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Wednesday, February 1, 2012

Going Back To Where We Came From

PIMCO's Bill Gross nails it.

[excerpt:]

"A 30-50 year virtuous cycle of credit expansion which has produced outsize paranormal returns for financial assets--bonds, stocks, real estate and commodities alike--is now delevering because of excessive 'risk' and the 'price' of money at the zero-bound. We are witnessing the death of abundance and the borning of austerity, for what may be a long, long time."